Colombia: Government forced to unblock the privatization plan by 2021

The huge fiscal deficit expected in 2020 of 8.9%, forced by the expenses of the health crisis, puts pressure on the market to put some goods such as regional electricity companies where the State has a high participation. Despite the fact that the Duque government needs resources to smooth the fiscal deficit, which may be 8.9% for 2020 and 7.6% for this year, due to higher expenses due to the health crisis, it does not show signs of wanting to get rid of assets considered strategic such as ISA and Ecopetrol. The projections of the current Medium Term Fiscal Framework estimate disposals for $ 12 trillion.

This sale of assets that the economy requires has to take place this year. With this, a notice is sent to the risk rating agencies to desist from downgrading the country and jeopardizing the investment grade.

However, in this regard, the Minister of Finance, Alberto Carrasquilla, has said that the focus at this time is to fight the crisis without losing sight of the responsibility of maintaining future stability that allows a good operation of the economy in the medium and long term. economy.

Carrasquilla has shown that these privatizations (ISA and Ecopetrol) are not in the 'DNA' of the Government.

The ministry of the Treasury said, Within the framework of medium-term fiscal planning, the national government is evaluating the asset management strategy that allows it to optimize the profitability of the portfolio of companies in which the Nation has a stake and its better use.

The first stage of the disposal plan could begin by offering the market its participation in several regional electricity companies. Other governments have done it but have not found an echo among investors.

Currently, the central government has a shareholding in Empresa Distribuidora del Pacífico (100%), Empresa de Energía del Archipelago de San Andrés y Providencia (67.05%), Electrocaquetá (72.35%), Electreficadora del Huila (83.05%) , Electrificadora del Meta (55.68%), Empresa de Energía del Amazonas (90.68%), Generadora y Comercializadora de Energía del Caribe (100%) and Energy Management (93.20%), among others.

A group of these electricity companies could go on the market in the first block: Electrificadora del Meta, Electrificadora del Huila; Power Plants of Nariño, Electrificadora del Caquetá, Power Plants of Cauca, Distribuidora del Pacífico and Urrá.